Brazil’s lube demand rose in January for a third month, keeping pressure on the country’s tight base oils supplies and the need for a pick-up in imports of the lubricant feedstock early this year.The sustained rise in demand left Brazil with unusually tight base oils supply in the fourth quarter of last year.The tight supply raised the prospect of an earlier recovery in demand for replenishment base oils volumes at the start of this year.The extension of Brazil’s lube demand growth into the beginning of this year compounded the supply-tightness and added to the need for additional volumes.Total lube consumption among the country’s nine largest lubricants suppliers came to 96,100 cubic meters (85,100 tonnes) in January, according to IBP.The volume typically accounts for around 80% of the country’s total lube consumption.The volume rose from 90,500 cubic meters in December and by 7% from year-earlier levels..Industrial oils consumption rose by 9% in January from year-earlier levels and engine oils consumption by 4%.Lube demand rose in January for the ninth time in ten months even amid signs of a slowdown in Brazil’s economic growth late last year and expectations of an extension of the slowdown this year.A sharp rise in the country’s interest rates in recent months and a slowdown in industrial production growth added to the pressure on economic activity.Concerns about slowing economic growth boosted the attraction for blenders to maintain lower base oils stocks.Expectations of a typical drop in US base oils export prices early in the year added to buyers’ incentive to hold back.Any moves to hold back or procure smaller volumes raised the prospect of squeezing further Brazil’s base oils supply balance early this year..Brazil’s December lube demand rises.Latam’s December lube demand rises
